Using A Bankruptcy Lawyer To File For Chapter 13
Chapter 13 bankruptcy may allow you to overcome a insurmountable debt load without having to give your belongings to creditors. It takes between three and five years to complete, and it is available for both indebted individuals and sole proprietorships.
Debt Relief for Individuals and Sole Proprietorship Businesses
In Chapter 13 bankruptcy all your debts are reorganized into one monthly payment. This occurs through negotiations during a Chapter 13 bankruptcy court hearing where you, your lawyer, your creditors and a Chapter 13 trustee can negotiate a fair reorganization plan.
For three to five years, you will make your monthly payments to the Chapter 13 trustee, who will distribute payments to your creditors. At the end of the three to five year period, all your debts will be wiped clean.
Secured Debts in Bankruptcy
Secured debts, like back liens taxes, mortgages or car payments, can sometimes be altered under this plan. However, the dollar amount owed on most home mortgages and consumer auto loans will not be lowered. But, by paying only a percentage owed on unsecured debt could allow yourself to free up income and allow your to catch up on payments to avoid foreclosure or repossession.
Restrictions do apply to those who choose to file a Chapter 13 bankruptcy. You may not be eligible if the money you owe exceeds a certain amount. If you are not able to file under Chapter 13 or consumer Chapter 7 bankruptcy, you may need to consider business Chapter 7 bankruptcy or Chapter 11 bankruptcy. A lawyer can help you determine which approach is best for you.
To learn more about bankruptcy in the Austin, Georgetown, Leander, or Round Rock area, you can schedule an appointment for a free initial consultation with one of the members of our legal team.